Grain merchant sees profits drop following ‘difficult harvest’

Scottish grain merchant WN Lindsay has blamed a difficult harvest in 2017 for a 27% drop in profits last year.

The company, which has grain stores in Keith, Stracathro near Brechin, and Tranent in East Lothian, posted pre-tax profits of £1.1 million for the year ended May 31 2018. This is down from £1.6m the year before.

The accounts filed with Companies House also reveal a 15% boost in turnover to £98.1m, from £83.3m previously.

In a report with the accounts, the company said: “2017 will go down in memory as one of the most difficult harvests the Scottish farmer has ever had to deal with.

“Store costs were therefore substantially higher than forecast and yields and quality were negatively affected.

“Trading opportunities were limited during the year and the environment remains highly competitive.”

The company, which employed 53 people during the year, said it continued to invest in its sites and people and it was “well placed to take advantage of any opportunities that may arise”.

On the current year, it said: “The ongoing pressure of farm income and Brexit related uncertainty, particularly around agriculture policy, creates an uncertain environment for the current financial year.

“The directors consider, however, that the group is well placed to manage these difficulties.”

The accounts also reveal that the highest paid unnamed director took home a pay cheque of £329,089 last year – up from £300,741 the year before.

The poor weather made the 2017 harvest hard for farmers.